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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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My parents gave their house to my sister and I in 2001. My

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My parents gave their house to my sister and I in 2001. My sister now wants to buy my half of the interest in this house. Do I have to put this on my taxes? If so, how much taxes would I pay on my $80000.
Submitted: 7 years ago.
Category: Tax
Expert:  jgordosea replied 7 years ago.

When you get a gift you also get the donor's cost to figure your gain.

So, you have a gain on the 80K based on what your parent's original cost plus improvements of the house was up to the time it was given to you.
You also will be able to deduct any selling expenses and any improvements you paid for in your cost (but reduce your cost by any depreciation or other tax credits) when figuring your gain.

Since you have owned the half house for more than one year you will report this as the sale as a capital gain on Schedule D.

From your information I have not included any possible exclusion from gain for this house being your primary residence at any time.

Please ask if you need clarification.
Best regards.

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